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Human Capital

HR Policy of TVEL FC is focused on achieving balance between the interests of its employees and the employer, and efficient development of professional and management capabilities in accordance with the long-term development strategy of the Company.


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HR principles that ensure achieving strategic goals


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Key long-term milestones of TVEL FC HR policy

Increase of personnel engagement to promote the
company's sustainability

Sustained growth of labor eiciency

Personnel adhering to corporate values

Development of strategically important competencies and skills in order to comply with requirements
to the personnel stated by international global companies

Engagement of each employee in solving the problems of strategic development and appealing to "collective intelligence"

Ensuring social acceptability of the changes made

Priority of "results culture" and continuous improvements

Systematic training, development and progress of the employees


All HR management activities, which are undertaken to achieve the goals, are focused on provision of the longterm personnel stability of TVEL Fuel Company.

Plans for HR policy development in the midterm:

  • promotion of the employer brand,
  • development of professional qualifications system,
  • provision of incentive tools’ efficiency
  • development of the corporate culture,
  • development and further improvement of safety culture.

TVEL Fuel Company hires its employees in strict compliance with the Labor Code of the Russian Federation. The top managers are sorted out of the members of the succession pool program.

Collective contracts are provided in all enterprises of the Fuel Company (except for TVEL JSC, because there is no primary trade union organization in the management company, and OK “RSK” JSC, EC "RGC" JSC, “Industrial Innovation” JSC). The benefits and safety nets are stipulated by regulatory acts, and apply to 100% of workers of these enterprises (98% from headcount with account of the Management company). In case of any considerable changes in the business, the Company shall notify their employees at least 2 months prior to the effective date of any such changes. This provision is stipulated by labor laws of the Russian Federation and by the Collective Agreement of each subsidiary.

Payments and benefits provided to the employees of TVEL Fuel Company are based on the provisions of the Labor Code of the Russian Federation, the Collective Agreements of the companies, as well as on local regulatory documents concerning social support of the employees, subject to the principles and approaches of the Uniform Industry-Specific Policy of ROSATOM and its organizations.


STAFF COMPOSITION

Steady decrease in headcount in 2011–2014 was caused by restructuring processes, centralization of management functions and personnel outsourcing. The ultimate goal of these processes with regard to HR management is to enhance labor efficiency in TVEL FC subsidiaries to match major foreign competitors. At the same time the Company creates new jobs through development of general industrial activities (refer to the section “Manufactured Assets and Results”). Furthermore, creation of more than 8 thousand jobs is envisaged due to the attribution of the status of territory of the advanced social and economic development to CATU Zelenogorsk, Novouralsk, Seversk and Glazov town (refer to the section “Social Partnership in the Territories of Presence”).

Key indicators


Indicator 2014 2015 2016 2016/2015 2017 (план)
TVEL FC headcount at the year-end, persons 23,717 22,724 21,843 -3,9% _
Headcount of TVEL FC, persons 25,169 22,527 22,127 -1,8% 21,854
Candidates and Doctors of Science, persons 281 235 260 +10,6% 233
Holders of MBA degree, persons 16 15 17 +13,3% 16
Employees that were employed by TVEL FC more than 5 years 81 82 84 +1,0% 84

Headcount of TVEL FC, persons

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Average headcount in key production enterprises of TVEL FC in 2016, persons


Enterprise Headcount
AECC JSC 937
PA ECP JSC 1,981
SGChE JSC 3,529
UEIP JSC 2,185
Total per SSC 8,632
MSZ PJSC 4,211
NCCP JSC 1,453
ChMP JSC 3,070
Total per NFFC 8,734
KMP JSC 1,090
Total per GCC 1,090
UGCMP LLC 728
VNIINM JSC 944
Tochmash VPA JSC 1,314
TOTAL for research complex 2,258

In 2016 1,992 workers were employed by TVEL FC. About 61.3% of the hired employees are men, 73% – persons under 50 years old. The largest share of the hired employees is from Sverdlovsk region (50%), the smallest share – from Krasnoyarsk territory and Irkutsk region 0.7% and 0.9% respectively.

Jobs creation in TVEL FC

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Following the results 2016 2,020 persons terminated their employment with the Company. The retirement rate[i] by the business regions of the Company varies from 6.3% in Krasnoyarsk territory to 15.1% in Vladimirregion. The retirement rates vary by gender as well: men — 9%; women — 9.7%. Overall retirement rate for TVEL Fuel Company is 9.2%. The greatest retirement rate (16%) in the reporting period was registered for the age group above 50 years old.

Within the development of general industrial activities of the Company there were created and preserved 2.4 thousand jobs.

Turnover rate[i] by the business regions of the Company varies from 0.6% in Tomsk region to 5.3% in Moscow. No voluntary dismissals occurred in Krasnoyarsk territory. Overall personnel turnover rate for TVEL Fuel Company is 2.2%. The most mobile age group (turnover rate 5.3%) - the workers under 45 years old. The turnover rate for men — 2.1%, women — 2.5%.

As of December 31, 2016, headcount of TVEL Fuel Company was 21,843 persons. Overall majority of subsidiaries' employees (over 98%) work under the open-term labor contracts and during normal business hours (40 hours a week). The headcount of employees under civil law contracts was 25 persons, external part-timers – 196 and persons on parental and childcare leave was 485.

TVEL Fuel Company upholds the principle of equality and tolerates no gender discrimination: male and female employees working in the Company get the same salary, regardless of categories.

. Total staff by categories at the eea -end, persons


Category 2014 2015 2016 2016/2015, %
Average headcount as per consolidated circuit (total), 23,717 22,724 21,843 -3,9%
Key staff 8,608 8,169 7,880 -3,5
Supporting staff 4,144 3,798 3,525 -7,2
Managers, including: 1,964 1,881 1,783 -5,2
Top Management (General Directors, their Deputies) 97 109 129 18,3
Specialists 8 717 8 639 8 437 -2,3
Office workers 256 216 201 -6,9
Indirect labor group 28 21 17 -19,0

TVEL FC total staff headcount by age, 2016, persons.

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The greatest part of the employees are men (64.7%). Average age of employees of the Company is 44.2. The employees under 35 years old comprise 23.6% of total staff.

TVEL FC total top managers headcount by age, 2016, persons.

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About 1.0% of the Company's average headcount took parental leave in 2016. The majority of them are women (over 88%). Over 90% of the employees, who took parental leave, return to the Company later on, and 87% of them keep working in the Company after 12 months.

Workforce by categories and regions in the reporting year, persons


Category Moscow Moscow region Vladimir Region Udmurt Republic Novosibirsk Region Sverdlovsk region Tomsk region Krasnoyarsk territory Irkutsk region Total in 2016
Headcount, including: 1,713 4,082 2,234 3,093 1,357 3,039 3,459 1,943 923 21,843
Key staff 28 1,409 900 1,462 555 1,139 1,569 428 390 7 880
Supporting staff 221 1,061 399 626 130 287 300 498 2 3 525
Managers, including: 238 364 171 232 136 222 220 106 95 1,783
Top Management (General Directors, their Deputies) 32 11 21 7 11 21 9 8 9 129
Specialists 1,206 1,244 744 765 521 1,324 1,335 887 412 8,437
Office workers 16 4 10 7 15 66 35 24 25 201
Indirect labor group 4 0 11 0 0 2 0 0 0 17

TVEL Fuel Company hires mainly the local residents, and attracts specialists from other regions only if and when no properly qualified candidates to the vacancy are available at the local labor market.

Composition of top management in TVEL FC subsidiaries by residence in the reporting year, %

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PERSONNEL ENGAGEMENT

Personnel engagement, personal interest in business and success of the Company have direct effect on business performance and efficiency. The Company implements a set of arrangements aimed at increase of personnel engagement, encourages the employees to progress from formal performance of obligations under the duty regulations towards professional improvement.

Personnel engagement


Enterprise 2014 2015 2016
TVEL JSC 82% 87% 85%
AECC JSC 74% 93% 96%
VNIINM JSC 75% 83% 84%
KMZ JSC 89% 91% 89%
Tochmash VPA JSC 84% 85% _
UGCMP LLC 88% 66% 64%
PA ECP JSC 93% 92% 91%
UEIP JSC 74% 78% 92%
SGChE JSC _ 78% 66%
MSZ JSC 77% 80% 80%
NCCP JSC 75% 75% 85%
ChMP JSC 84% 83% 67%
Average for TVEL FC 81% 83% 82%

Engagement is analysed under the unified industrial slogan: “ROSATOM cares about your opinion”. Plans of actions, aimed at increase and retention of personnel engagement, are approved and implemented at the annual management meetings. In general, annual surveys allow to estimate the employee satisfaction with work conditions according to 19 factors, as well as to determine the share of employees who:

  • recommend their company as a good employer to their relatives and friends;
  • attempt to perform their duties to the best of their abilities, to improve enterprise processes and come up with improving proposals;
  • intend to keep being employed by the Company in future.

Comprehensive efforts within the year research project are made both through local plans of activities implemented by the subsidiaries, and through execution of the unified divisional projects.

INCENTIVE AND REWARD SYSTEM

Incentive and reward policy in TVEL Fuel Company is aimed at maintenance of salary competitiveness. More than RUB 1 billion was allocated to salary increase and indexation in the reporting period.

The average salary level in TVEL Fuel Company (TVEL JSC not included) made RUB 74,648, which is 6.6% higher than in the previous year.

Average salary in TVEL FC (TVEL JSC not included)

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Ratio of standard entry level wage of the Company to minimum wage in some regions varies from 1 to 1.3 times (maximum — 1.3 times in Novosibirsk region).

Average pay in TVEL FC subsidiaries, RUB

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Ratio of average pay in the subsidiaries of TVEL Fuel Company to average pay in regions of operations


Region 2014 2015 2016 Average pay in the region in the reporting year
Moscow 2,6 2,6 2,3 68,647
Moscow region 1,7 1,7 1,7 42,487
Vladimir region 1,5 1,6 1,6 25,317
Udmurt Republic 1,8 1,8 1,9 26,135
Novosibirsk region 2,1 2,2 2,3 29,118
Sverdlovsk region 2,4 2,3 2,5 31,981
Tomsk region 1,9 2,0 2,0 34,658
Krasnoyarsk territory 2,6 2,4 2,5 37,236
Irkutsk region 2,4 2,4 2,4 34,168

Arrangements 2016:

  • salary indexation at all enterprises of the Company, except for TVEL JSC;
  • increase of annual premium rate in certain subsidiaries (increase by per cent corresponding to salary indexation per cent);
  • selective reconsideration of the employees’ personal additional incentive following the results of the annual assessment;
  • review of remuneration system and benefits efficiency in the Company’s enterprises; receipt of the employees’ proposals for alteration of salary disclosure documents.

Plans 2017:

  • payment of up to 50% of annual premium in advance (in order to increase the employees’ social security level due to volatile economic environment and rise in inflation);
  • иsalary indexation at all enterprises of TVEL Fuel Company, except for TVEL JSC;
  • possible increase of annual premium rate in certain enterprises (increase by per cent corresponding to salary indexation per cent);
  • selective reconsideration of the employees’ personal additional incentive following the results of the annual assessment;
  • updating of local salary and benefits disclosure documents in order to improve their efficiency (reconsideration of annual premium calculation, approaches to PAI identification following the results of the assessment, etc.);
  • elaboration and implementation of measures aimed at increase of variable part of total remuneration depending on personal and collective labor efficiency.

KPI System for Top Executive and Inferior Management

Business performance management system applied by TVEL Fuel Company is based on generating of KPI list for topmanagement, ensuring comprehensive development of the Company. Maximum preference is given to such spheres as nuclear, radiation, industrial safety and ecology; operational efficiency; increase of share on the markets of nuclear products and on general industrial activities markets, where the Company improves its performance by introduction of new products.

Basic KPI for TVEL FC management

Basic KPI of Top Management

  • AFCF of TVEL FC;
  • investment activity integrated efficiency indicator;
  • semi-fixed costs;
  • labor efficiency;
  • foreign orders portfolio for 10 years;
  • foreign proceeds;
  • integral indicator for new products;
  • proceeds on new products beyond and within the profile on a competitive basis;
  • new products portfolio of FC for 10 years;
  • reduction of stock of FE NFC;
  • LTIFR;
  • lost time injury frequency rate (LTIFR);
  • no INES events level 2 and above;
  • completion of state orders.

Basic KPI of Vice-Presidents

  • cost of products manufacture;
  • operating efficiency;
  • labor efficiency;
  • proceeds and foreign orders portfolio, and new products of the Company.

Basic KPI of Directors of subsidiaries

  • investment activity integrating efficiency indicator;
  • LTIFR;
  • fulfilment of government contracts, investment projects;
  • full cost of unit sold.

Remuneration scheme for President, Vice Presidents of TVEL JSC, Directors General of the companies included into the management system of TVEL Fuel Company

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When entering employment in case of residential mobility relocation payment is provided. Upon termination of employment only payments identified by Russian Labor Code are made.

Remuneration consultants are not engaged in determining the remuneration rate. Remuneration rate must be approved by ROSATOM.

Non-Material Benefits

System of non-material benefits for the employees of TVEL Fuel Company is aimed to encourage professional growth, increase in efficiency and performance, attainment of the goals and the best final results of activities, enhancement of the work quality and arrangement of conditions for creative activity.

Achievements of the employees of the Company are marked with state awards, awards of ROSATOM and TVEL JSC in accordance with the Uniform Industry- Specific Award Policy.

During the year 2016 in celebration of commemorative days and anniversaries, including the twentieth anniversary of TVEL JSC, more than 2.3 thousand workers and veterans received rewards and bonuses for work achievements, contribution to development of enterprises, TVEL Fuel Company and nuclear industry, in particular:

  • national awards — 17 employees;
  • awards of ROSATOM — more than 1.1 thousand persons, including merit badges — 123 workers and veterans, labor merit badges “Veteran of Nuclear Power and Industry” — 204 persons;
  • awards of TVEL JSC — more than 1.1 thousand persons.

For conscientious work, significant contribution to development of the nuclear power and high performance TVEL JSC staff was awarded with the Note of Acknowledgement of the Government of the Russian Federation and the Note of Acknowledgement of the President of the Russian Federation.

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We are very proud of MSZ JSC: quality of labor, science and wages are at high level. We are interested in ROSATOM building plans for development of the enterprise in Moscow Region. We will provide comfortable conditions for them.

Andrey Vorobyov

Governor of Moscow Region

DEVELOPMENT OF STAFF CAPACITIES

Traditionally, HR development and training is in the focus and it is one of the top priorities of HR policy of TVEL Fuel Company.

The development and training mission is focused on creation of an environment for employees to achieve the business goals while increasing the level of their professionalism, corporate culture and personnel management technologies.

The purpose of HR development program is to support business priorities of ROSATOM.

Priority development programs at the Company’s enterprises:

  • ПProgram of Succession Pool Formation and Development: “ROSATOM Assets”, “ROSATOM Capital” and “ROSATOM Talents”.
  • creation of teaching resource centers for further training of the personnel to manage the improvements;
  • development of internal coaches institute;
  • development of professional societies as the points of growth for the Company leadership in the market, technology, efficiency growth rates;
  • safety culture development.

Personnel Training

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Within HR Development and Training Provisions, the Company’s enterprises regularly provide training to enhance competencies of their workers. Amount of investment training in 2016 made RUB 101 million.

Total number of TVEL FC employees, who underwent training in during the reporting year was 36 thousand (increase of 34% over 2015). Average training hours per each employee of the Company was 64.9 hours in 2016.

Average training hours per employee

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Educational events, that contribute to development of skills, are implemented by efforts of the internal coaches, as well as the external providers of training services.

There is no program aimed at assistance on transition to new work/new mode of living for the retired or dismissed employees


73
internal coaches

on improvements

10
trainings

in improvement tools

13 146
persons

trained

6
process works

11
leader-forums

held

341
engineers

trained TRIZ

90
workers

mobile team for dealing with complicated technical problems

300
solutions

to 74 production problems (~30% of solutions are being implemented)

>390
RUB mln

total economic benefit

Formation and Development of Succession Pool and Succession Plans

ТTVEL FC pays great attention to development of succession pool and training of managers.

Training in this sphere is built on the following principles:

  • correlation with business strategy and industry development;
  • focus on the most advanced international leadership development practices;
  • analysis of the uniform industryspecific development system for managers.

Formation of succession plans, formation and development of managerial succession pool are in accordance with the Uniform Industry- Specific Guidelines to Create and Develop Managerial Succession Pool (MPS) in ROSATOM and its organizations.

The succession planning and MPS formation are based on the results of Annual Performance Assessment “RECORD”. The prime tool used to form and approve the managerial succession plans of TVEL Fuel Company is the review of personnel capacity by holding the round tables at all levels of management. The decision to include an employee in the MPS list is taken following the results of independent evaluation, which contains the assessment of potential, motivation and compliance with corporate values. An employee may be included into the succession plans on the basis of his/her manager’s decision taken with due regard to his/her achievements in the past period.

Preparation of reservists of senior, middle and entry-level managers to career development is carried out in accordance with industry-specific development MPS programs “ROSATOM Assets”, “ROSATOM Capital” and “ROSATOM Talents”. The development programs are focused on raising the level of corporate and managerial competencies of the MPS participants.

TVEL FC succession pool and succession plans[i]


Indicator 2014 2015 2016 2017 (plan)
Number of employees included to succession pool 151 215 162 190
Number of employees included to succession pool and running for major posts 106 139 162 190
Number of employees included to succession pool and transferred to major posts 50 89 80 27

Personnel Efficiency Assessment

In 2016 the Company continues to operate the annual personnel efficiency assessment system.

of annual personnel efficiency assessment system applied in TVEL FC


Assessment type Target group Results of the reporting period
"RECORD" assessment Managers, specialists, employees (MSE) 98% of MSE headcount were assessed; this figure corresponds to target indicators. All TVEL FC subsidiaries took part in the assessment. Following the results of assessment the recommendations were made concerning alteration of personal additional incentives, choice of training program and recruitment of employees to succession pool.
Corporate Employee Assessment System by professional and personal competences in compliance with corporate values Staff 96.5% of staff headcount were assessed. Following the results of assessment, the recommendations were made concerning reconsideration of personal additional incentives. In 2016 3.5% of employees were not covered by the assessment. These are women, who were on parental leave, the employees, who worked at the Company for less than 3 months, the employees, who were withdrawn from subsidiaries under the restructuring processes.
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Professional Associations

The project “Professional associations of TVEL Fuel Company” is focused on incorporation and interaction of the industry experts with the purpose to exchange the best practices, to roll out these practices, to accumulate the experience.


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professional associations were established in 2016

The goal of professional associations is to develop strategically valuable organizational knowledge, involve workers into solution of tasks and problems, roll out the best practices. Their functions will include collection and systematization of knowledge, experience, monitoring of competitors development, innovations in similar and related technologies, trend analysis, etc.

In 2016 five professional associations were established:

  • “Technologies of Separation- Sublimation Complex” (SSC Technologies),
  • Additive technologies”,
  • Polymeric Composite Materials”,
  • “Machine Building”
  • “Electrochemical and Industrial Products”.

New association will become a sort of “centers of competencies” with activities aimed at improvement of quality, safety and competitive power of the enterprises. They will contribute to the process of continuous self-training of the Company, and will become the efficient tool of prompt mobilization of intellectual capital of TVEL Fuel Company to solve the critical tasks.

Within the project implementation there was launched the pilot mode of the “Portal of professional associations of the Fuel Company”, the heads of the enterprises and the key specialists are being notified there of.

Establishment of professional associations in TVEL Fuel Company will have positive effect on the increase of competences, determination of new promising products, will attract young specialists and will allow to transfer and preserve the accumulated experience and knowledge.


Professional Competitions


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Professional competitions of TVEL Fuel Company among the workers of most common trades, being held for 9 years, in 2016 were scaled-up in number of tasks and were oriented to WorkSkills standards.

1st industrial ROSATOM Championship AtomSkills 2016 (by WorldSkills methods) was held in Ekaterinburg on June 20- 23, 2016 at the site of “Ekaterinburg- Expo”; 201 persons from ROSATOM participated in the Championship, including 30 workers from TVEL Fuel Company (22 workers under 27 years old, 8 specialists — from 28 to 35 years old). 22 specialists of the Company were engaged in the expert activities within the project.

With the purpose to win in the Championship there was organized the complex of organizational, motivationalpsychological, communicative activities that allowed in a relatively short time frame to generate the energy of competitive strengths accumulation and to provide the team winning mindset.

The team of TVEL Fuel Company became the total winner (gold winner). In 6 competences out of 9 there were earned 7 golden, 2 silver and 1 bronze medals. TVEL Fuel Company was awarded with the commemorative cup for the first team place.

Professional Standards

TVEL JSC is the member of the Council for professional qualifications in the sphere of nuclear power, responsible for reviewing the professional standards elaborated for the industry. In 2016 the specialists of the nuclear industry developed and approved 12 draft professional standards.

Besides, TVEL JSC acted as the co-author in development of the professional standard “Operator of processing, separation and purification of chemical metal compounds in nuclear power”, developed by National Research Nuclear University MEPhI.

PARTNERSHIP WITH EDUCATIONAL INSTITUTIONS

Recruitment of promising young people is one of the top priorities in HR policy of TVEL Fuel Company. By hiring young specialists the Company intends to preserve and strengthen its position in the sphere of science and advanced technologies in the years ahead.

Cooperation with educational institutions is carried out on the basis of the communication plan on work with universities and graduates; the plan that is being continuously updated on an annual basis.

For the purpose of occupational guidance for schoolchildren the Company’s enterprises organize excursions, meetings with young specialists, various information and educational activities.

The major areas of cooperation with educational establishments of higher and secondary education are the following:

  • long-term planning of demand for specialists in terms of industryspecific training (for 2017–2027);
  • raising awareness among students and graduates on possibilities of professional growth in the enterprises of TVEL Fuel Company, as well as TVEL FC and ROSATOM brand promotion;
  • arrangement of educational and onthe- job trainings at the premises of the Company’s enterprises;
  • реализация совместных образовательных программ, спецкурсов в рамках базовых кафедр:
    – Branch of the 9th Department of MEPhI NRNU and complex branch of the Department of D.I. Mendeleev University of Chemical Technology of Russia and M.V. Lomonosov Moscow State University of Fine Chemical Technologies at VNIINM JSC;
    - Specialized Department of “Design and Engineering Support of Mechanical Facilities” of Stoletovykh Vladimir State University at Tochmash VPA JSC”;
    – Specialized Department of Seversk Institute of Technology of MEPhI NRNU “Radiochemistry” at the premises of SGChE JSC (“Proryv” Project);
  • special competitions for recruiting young specialists with advanced capabilities:
    – Young Professionals Tournament “TeMP” (7 enterprises are involved);
    – Rosatom Career Days (4 events);
    – annual participation of young specialists in industry-specific and national contests of professional skills: AtomSkills (first position in AtomSkills) and Worldkills Hi-Tech (2 golden awards).
  • Establishment of professional competencies centers at the Company enterprises:
    – Joint-Stock Company Mashinostroitelny Zavod + Moscow regional Polytechnic College, the branch of National Research Nuclear University MEPhI; Competence: chemical laboratory analysis;
    – Tochmash VPA JSC + State Budgetary Professional Education Institution of Vladimir Region “Vladimir Polytechnic College”; Competence: CAD Engineering Graphics.

In 2016 the enterprises of the Company offered practical training to 559 students of higher educational institutions and vocational secondary schools, 58 of them were employed by TVEL Fuel Company. In 2017, the Company expects 527 students to take their practical training.

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representatives of TVEL took part in the International forum of young power engineers and industrialists “Forsage-2016”. Ruslan Aliev, the young scientist from VNIINM JSC, ranked second in the final contest of the projects “The Innovation Leader of the Nuclear Industry”. Dmitry Redozubov and Aleksandr Gorbovsky, the young industrialists of ChMP JSC, became the laureates in RPS group nomination for “the best team work”.

Over the reporting period the Company employed 99 graduates of the higher educational institutions and vocational secondary schools, 12 of which took target preparation classes for employment by TVEL Fuel Company. Diploma point average of the employed graduates is over 4.2.

UNIFIED YOUTH POLICY

The youth as the most active part of the staff has always been the indicator of changes and driver of the Company development.

On December 22, 2016 the constituting meeting on establishment of the Joint Youth Council of TVEL JSC and its subsidiaries approved the Concept of the Unified Youth Policy.

The following priority issues were defined:

  • promotion of vision and Values of ROSATOM, strategic objectives of TVEL Fuel Company;
  • strengthening of business reputation of TVEL JSC;
  • implementation of social ideology.

The Unified Youth Policy suggests participation of young specialists in historical work, development of corporate science, establishment of new production units in order to provide the flow of workforce into the cities of presence, increase of personnel engagement, in implementation of the strategic initiatives of TVEL JSC “Social Responsibility”, “Environmental Responsibility”, etc.

SOCIAL GUARANTEES

In addition to mandatory social guarantees, benefits and privileges envisaged by the labor laws, the enterprises of the Company prepared for the employees working on a full-time basis the following corporate social programs:

  • non-state pension benefits;
  • voluntary health and industrial injuries insurance;
  • assistance in housing programs;
  • sanitary and resort treatment, and recreation of employees and their children;
  • arrangement of catering for employees;
  • assistance to non-working pensioners;
  • organization of sports and cultural events;
  • benefits to employees in difficult situations.

TVEL FC social programs represent a strong motivating factor. Total amount spent by the Company on its social programs in 2016 made RUB 1,346 million, or RUB 60.8 thousand per worker.

Expenses of TVEL FC on social programs, RUB mln

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Expenses of TVEL FC on social programs per one worker, RUB thous.

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Implementation of major corporate social programs in 2016


Corporate social program Funds allocated under the program in 2016, RUB mln Basic facts
Voluntary health insurance (VHI) 183,0 100% of TVEL FC employees are insured under VHI policy1 [i].
Accident and health insurance 10,6 87% of TVEL FC employees are covered by accident and sickness insurance.
Sanitary and resort treatment, recreation of children 160,1 3,711 employees got vouchers to sanitary and rehabilitation resorts in 2016, where 1,065 persons work in harmful conditions, and 1,783 children. Maximum amount of each voucher in 2016 was RUB 54.6 thous. for a 21-days leave.
Assistance in improvement of housing conditions 91,4 1,027 employees improved their housing conditions under the program, and 536 out of them are young specialists up to 35.
ОBenefits to employees in difficult situations 59,3 3,859 workers received welfare assistance in 2016. Average welfare amount was RUB 15,4 thous. The amount of benefit does not depend on the official position. Types and criteria of benefit provision are unified.
Sports and cultural events 117,4 The enterprises of TVEL FC held more than 480 corporate and sports competitions in 2016. Total number of participants — over 27 thous. of workers and members of their families.
Assistance to non-working pensioners 483,6 There are over 37 thousand non-working pensioners registered in the organizations (personnel service, veterans’ council, trade unions) of TVEL Fuel Company. Average amount of assistance per 1 pensioner is RUB 13 thous. per year. 1,268 pensioners got vouchers to sanitary resorts.
Non-state pension provision 132,9 By the end 2016, 19% of TVEL FC workers were involved in the non-state pension provision program; the highest rate was achieved at PA ECP JSC (34.6%), ChMP JSC (29%), MSZ JSC (25.8%), and UEIP JSC (25%). The major part of pension accruals under the NPO program were accumulated at Non- State Pension Fund “Atomgarant”.
Итого 1,238,4 _

Interaction with Trade Unions

Primary trade unions function in all enterprises of TVEL Fuel Company. Each employee may join a trade union that represents the interests of the workers. Management of ROSATOM and TVEL FC supports self-organization of the employees. The share of employeesmembers of trade unions reaches 98% in some subsidiaries.

TVEL Fuel Company interacts with trade unions under the social partnership program. The management acknowledges the important role of trade union in implementation of corporate social programs and in employees awareness raising. Social stability at the enterprises and in the cities of presence of TVEL Fuel Company is the result of cooperation between TVEL JSC and the Russian Trade Union of Nuclear Power and Industry (RTUNPIW), subsidiaries of the Company and primary trade unions, veteran councils and other workers’ associations.

Association of primary trade union organizations of the Company’s subsidiaries operates in TVEL Fuel Company. Management of TVEL JSC and RTUNPIW holds regular meetings with participation of the chairmen of primary trade unions and HR directors (3 meetings were held in 2016), as well as the meetings of the Company’s expert working group and the trade union (5 meetings were held in 2016).

Interaction with the branch trade union is of major significance for the Company. The institution of public representatives responsible for labor protection is continuously improved from year to year — these are representatives of the working team, who in addition to their main duties perform supervisory functions on labor protection, record violations of labor protection requirements, submit proposals for elimination of violations and improve working conditions, participate in days of labor protection, etc. Following the results of such assessment the Company organized moral and material incentives for their activities.

OCCUPATIONAL HEALTH AND SAFETY

Occupational Safety and Health Management System

Occupational Health and Safety Management in TVEL Fuel Company

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The main directions, directives and commitments in the sphere of occupational safety and health of TVEL Fuel Company workers are stipulated in the TVEL JSC Health and Labor Protection Policy.

System-based application of the guiding principles of the policy, unified methods for identification and assessment of risks in Health and Labor Protection allows to allocate funds to solve most crucial tasks in the sphere of occupational safety.

High-priority goals and objectives aimed at risks mitigation in Health and Labor Protection are the constituent elements of planning, they are included in the annual Programs of actions to achieve the goals and objectives at the level of TVEL Fuel Company.

Development and improvement of safety culture is the priority direction within the corporate Integrated Management System. In 2016 there was initiated the process of incorporation of safety culture into the Management System of TVEL JSC. Functional organizational structure and the core elements of development and improvement of safety culture in TVEL Fuel Company were developed and introduced.

Responsibilities of managers, specialists and other workers pertaining to occupational safety are regulated by “Occupational safety management system in TVEL JSC”. Local regulatory documents on labor protection include instructions, lists, logs. The company organizes trainings and assessment of knowledge, inspections, briefings, including for representatives of contracting organizations.

TVEL JSC holds annually the meetings of technical directors and managers for nuclear and radiation safety, occupational safety and environmental protection. During such meetings participants exchange their thoughts, share best practices with the colleagues and report on the measures taken to address the problems. All participants are notified about the occurred accidents, causes of such accidents, and organizational and technical actions taken. Following the results of the meeting the participants adopt the respective decision including the instructions for further reduction of injury rates and the measures to improve working conditions

The complex and special-purpose inspections on security assurance are held to assess the functioning of OSH management system and implementation of measures. The inspections also cover subsidiaries of the enterprises and contracting organizations rendering their services in the territory of the enterprises included into the management system of TVEL Fuel Company.

In the subsidiaries of TVEL JSC there have been established and are functioning the Tripartite Committees on Occupational Safety and Security, composed of representatives of management, workers and unions (such committees cover 98.5% of the total number of TVEL Fuel Company, including CFR-3 and CFR-4 workers).

Starting from September 1, 2016 within the improvement of the Integrated Management System TVEL JSC introduced new Standard of the Fuel Company “Procedure for Development and Improvement of Safety Culture”. The standard represents the single document regulating development of safety culture in TVEL JSC and subsidiaries. Introduction of the Standard includes working out of documentation for development and improvement of safety culture, training of personnel, selfevaluation and external evaluation of the safety culture level. In accordance with the Standard the Company undertakes to develop and implement the single comprehensive plan of actions for improvement of the safety culture.

The Company spent grand total RUB 1.97 billion or RUB 56 thousand per each employee on labor protection arrangements in 2016.

More than 112 thousand SFI submitted in 2016 were aimed at safety culture improvement.

The average occupational injury rate in TVEL Fuel Company in 2016 was 0.16, and the injuries were registered only at three enterprises out of 13.

Dynamics of the indicators of occupational health and industrial safety in TVEL FC [i]


Indicator 2014 2015 2016
Average Industrial Injuries Frequency Rate (IIFR) 0,12 0,23 0,16
Injury Rate (IR) 0,01 0,03 0,02
Occupational Disease Rate (ODR) 0,00 0,00 0,00
Absentee Rate (AR) 2,76 2,03 2,88
Lost Day Rate (LDR) 0,11 1,90 0,40

Average industrial injuries frequency rate (IIFR) in TVEL FC subsidiaries[i]

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Industrial injuries at TVEL FC enterprises, persons[i]

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Injuries among the workers of subsidiaries and contracting entities in 2016


Organization Number of incidents Reason
Subsidiary companies 5 _
ChMP JSC 1 violation of requirements of process instruction
Energoremont LLC (subsidiary of ChMP JSC) 1 improper works organization
Elemash LLC (subsidiary of ChMP JSC) 1 personal negligence on the part of the injured
MSZ-Mekhanika LLC (subsidiary of MSZ JSC) 1 violation of labor safety regulations
SibRegionPromservice LLC (subsidiary of SGChE JSC) 1 improper preparation of equipment to repair
Contracting entities 3 _
Titan LLC (industrial site of ChMP JSC) 1 Improper works organization
SpetsEnergoStroy LLC (industrial site of SGChe JSC) 1 violation of the safety at height regulations
GostStroy LLC (industrial site of UEIP JSC) 1 personal negligence, low level of training in safe working procedures

Most industrial injuries occurred due to organizational faults, such as failure of managers and specialists to ensure labor safety in accordance with the requirements of the regulating documents, as well as failure of the injured persons to observe labor and production discipline, labor protection rules and regulations.

No emergencies at hazardous facilities or mass accidents occurred.

Registration of accidents and generation of reports is carried out on the basis of the following regulatory documents:

  • Labor Code of the Russian Federation (Articles 227-231);
  • Provisions on Specifics of Investigation of Industrial Accidents in Certain Sectors and Organizations (Appendix No. 2 to the Decree of the Ministry of Labor and Social Development of the Russian Federation No. 73 dated November 24, 2002).

Within the Occupational Safety and Health Objective Achievement Program for 2016 the following actions were fulfilled: technology and equipment modernization, improvements in working conditions, awareness and competence of personnel, development and improvements of the safety culture focusing on reduction of injuries.

The results of occupational hazards evaluation outlined the priority goals and objectives for operational health and safety to be included into the 2017 Program.

In each TVEL Fuel Company’s organization, operating hazardous production facilities, there were adopted industrial safety measures in 2016. The basic industrial safety measure include the following: industrial safety expertise, schedules and maintenance of technical devices, buildings and structures of hazardous industrial facilities, ensuring functionality of the production control and supervision. Implementation of such measures allowed to reduce volumes of hazardous chemicals, thus lowering the hazard class of the production facilities.

No violations of safety parameters or limits of the effective and equivalent doses set by the nuclear and radiation safety regulations were registered at the subsidiaries of the Company in 2016.

All production enterprises of the Fuel Company operate within the approved effective dose limits applicable to the personnel, no Group A personnel is available (individuals exposed to the effective dose of 100+ mSv and more[i], over a period of five successive years, or effective dose of 50+ mSv and more during any one year).

0,09

LTIFR indicator for TVEL Fuel Company in 2016 decreased by 35,7% to 0.09.

Average annual effective dose, mSv

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Maximum effective dose for personnel, mSv

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Group A personnel distribution by individual exposure dose, persons

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In 2016, the Department of Nuclear, Radiation, Industrial and Environmental Safety of TVEL JSC together with the Inspectorate for Control over Safety of Nuclear and Radiation Hazard Facilities of TVEL JSC carried out 20 inspections, including 7 unscheduled inspections by the orders of the TVEL JSC management. The inspections revealed 676 violations (532 violations were revealed in 2015). Increase in the number of the revealed violations is connected with additional unscheduled inspections.

Structure of revealed violations

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Structure of revealed violations:

  • did not register any INES events at level 2 and above;
  • did not exceed limits of the annual effective radiation doses of the personnel;
  • had no Group A personnel exposed to effective radiation dose 100 mSv and above over any successive 5 years.

For the purposes of prevention and mitigation of the impact of hazardous and harmful production factors during the operations in hazardous and harmful conditions, the workers are provided with special and properly certified clothing, footwear and individual protection means for free. Average cost of individual protection equipment per each worker exposed to hazardous or harmful labor conditions in 2016 amounted to RUB 11.6 thousand.

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In accordance with provisions of federal laws, TVEL Fuel Company organizes regular medical examination of its workers involved in operations with hazardous and harmful factors. Workers involved in operations in harmful conditions are entitled to privileges and bonuses in accordance with applicable laws of the Russian Federation and the “List of Occupations and Positions of Workers and MSE Entitled to the Early Retirement and Benefits for Working in Unfavorable Labor Conditions”, including: medical and preventive meals, compensations, extra leaves, etc.

Industrial sites of the Company’s subsidiaries are subject to regular control over the contents of harmful chemicals in waste water, exhaust from ventilation systems, radiation and chemical status monitoring, organization and performance of all kinds of supervision in accordance with the Production Control Programs.

Special assessment of working conditions is intended to assess the conditions and labor safety at the work places, determine the extent of deviation from the parameters of the production environment and work process; following the results of such assessment the arrangements are scheduled for improvement of the labor conditions.

All subsidiaries provide regular labor safety training in accordance with GOST 12.0.004-90 and fire safety training in accordance with the Federal Law No. 69- FZ “On Fire Safety”, as well as all types of briefings and tests with respect to the above mentioned spheres. The Company takes preventive measures to mitigate industrial injuries and occupational illness.

In 2016, the average number of training hours per one worker of the Company involving functioning and maintenance of nuclear and radiationhazard facilities, standards of nuclear and radiation safety made 54 hours (total number of training hours in TVEL Fuel Company was 25,373).

Retirement rate means total dismissals due to any reasons by an employee category/for the whole Company divided by headcount by category/for the whole Company as of the period end × 100.

Turnover rate means voluntary dismissals as per employee category/for the whole Company divided by headcount by category/for the whole Company as of the period end × 100.

1.
Москва
АО «ТВЭЛ», АО «ВНИИНМ»,
АО «МЗП», АО «ЦПТИ»

2.

Московская область

АО «МСЗ» (электросталь)

3.

Санкт-Петербург

Филиал ООО «НПО «Ценротех»

4.

Владимирская область

АО «ВПО «Точмаш» (Владимир),
ПАО «КМЗ» (Ковров)

5.

Удмуртская республика

АО ЧМЗ (Глазов)

6.

Свердловская область

АО «УЭХК»,
ООО «НПО «Центротех» (Новоуральск)

7.

Новосибирская область

ПАО «НЗХК» (Новосибирск)

8.

Красноярский край

АО «ПО «ЭХЗ» (Зеленогорск)

9.

Томская область

АО «СХК» (Северск)

10.

Иркутская область

АО «АЭХК» (Ангарск)